Question

Compute hourly rate and overtime rates as follows:

1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, drop the third decimal place.

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

​Carla Maloney is a waitress who regularly receives $80 each week in tips and works 40 hours each week. The minimum gross weekly pay, excluding tips, that the restaurant could pay Maloney without violating the FLSA is _

Answer 1

The Fair Labor Standards Act (FLSA) is a federal law which establishes minimum wage, overtime pay eligibility, record keeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

As per FLSA the employees will receive overtime at the rate of one and one-half times the employee’s regular rate for all hours worked in excess of 40 hours during each work week

In the given question Carla has worked only for 40 hours during the week so she is not eligible for overtime pay and thus overtime rate is not calculated

The minimum gross weekly pay of Carla(excluding tips)

= [Number of hours each week x minimum hourly wage rate] - tips

= [40 hours x $7.25] - 80

=$210